| Third ICP Mutual Fund |
|
|
|
|
|
|
|
|
|
|
| Annual
Report 1999 |
|
|
|
|
|
If undelivered please
return to: |
|
| HEAD OFFICE: |
|
MUTUAL FUNDS DEPTT: |
|
| N.B.P.
Building, 5th Floor, |
|
Dawood Centre, Ground
Floor, |
|
| P.O. Box No. 5410, |
|
Moulvi Tamizuddin Khan
Road, Karachi. |
|
| I.I.
Chundrigar Road, Karachi. |
|
Phones: 5686014-15,
5685104-105 |
|
| Phones:
921-2360-69 |
|
Telex: 20079 ICP PK.
29223 ICP PK. |
|
| Telefax:
92-21-2388-89 |
|
Telefax: 92-021-5680035 |
|
| E-mail:
icp@paknet2-3.ptc.pk |
|
E-mail:
icpkb@paknet3.ptc.pk |
|
|
|
| Balance
Sheet as at 30 June 1999 |
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| NET ASSETS |
|
|
|
|
|
|
| Investment
in quoted shares |
|
3 |
59,001,756 |
64,572,989 |
|
| [Market
value Rs. 62,343,146 ( 1998: Rs. 61,986,472)] |
|
|
|
|
|
|
|
| Security deposit |
|
|
|
|
100,000 |
100,000 |
|
|
|
|
|
|
| Current assets |
|
|
|
|
| Dividend
receivable |
|
525,000 |
638,500 |
|
|
|
|
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
|
|
|
|
|
| Current
account with the Investment Corporation |
|
|
|
|
| of
Pakistan (ICP) |
|
|
5,946,104 |
-- |
|
|
|
|
|
|
| Taxation - net |
|
265,902 |
-- |
|
|
|
------------------ |
------------------ |
|
|
|
|
6,744,506 |
658,500 |
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
| Accrued
expenses |
|
|
|
19,338 |
59,832 |
|
| Dividend
payable |
|
|
|
7,500,000 |
-- |
|
| Unclaimed
dividend |
|
|
|
2,850,704 |
6,862,821 |
|
| Current
account with the Investment Corporation |
|
|
|
|
| of
Pakistan (ICP) |
|
|
|
-- |
989,456 |
|
| Taxation - net |
|
|
|
-- |
470,707 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
10,370,042 |
8,382,816 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
(3,625,536) |
(7,724,316) |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
55,476,220 |
56,948,673 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| FINANCED BY |
|
|
|
| Capital
and Reserves |
|
|
|
| Capital |
|
|
|
|
| Authorised |
|
|
|
| 5,000,000
Certificates of Rs. 10/- each |
|
|
50,000,000 |
50,000,000 |
|
|
|
|
========== |
========== |
|
| Issued,
subscribed and paid-up |
|
|
|
|
| 5,000,000
Certificates of Rs. 10/- each fully paid in cash |
|
50,000,000 |
50,000,000 |
|
|
|
|
| Revenue
reserve |
|
|
|
| Unappropriated
income |
|
|
|
5,476,220 |
6,948,673 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
55,476,220 |
56,948,673 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
S.M MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
|
|
| Income
and Expenditure Account |
|
| For
the year ended 30 June 1999 |
|
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| INCOME |
|
|
|
|
| Dividend |
|
|
|
4,061,424 |
3,388,688 |
|
| Return
on current account with the ICP |
|
259,844 |
590,923 |
|
| Profit
on sale of investment |
|
|
3,791,634 |
9,524,170 |
|
| Other income |
|
|
|
9,765 |
18,584 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
8,122,667 |
13,522,365 |
|
|
|
|
|
|
| EXPENDITURE |
|
|
|
|
| Management
fee |
|
|
5 |
1,293,717 |
1,098,288 |
|
| Auditors'
remuneration |
|
|
6 |
10,415 |
12,130 |
|
| Diminution
in the value of investment |
|
|
571,600 |
1,591,820 |
|
| Other expenses |
|
|
|
7 |
202,915 |
325,088 |
|
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,078,647 |
3,027,326 |
|
|
|
|
------------------ |
------------------ |
|
| INCOME
BEFORE TAXATION |
|
|
|
6,044,020 |
10,495,039 |
|
|
|
|
| TAXATION-Current |
|
|
8 |
-- |
350,000 |
|
| - Prior |
|
|
|
16,473 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
16,473 |
350,000 |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCOME AFTER TAXATION |
|
|
6,027,547 |
10,145,039 |
|
| UNAPPROPRIATED
INCOME BROUGHT FORWARD |
|
6,948,673 |
3,303,634 |
|
|
|
|
------------------ |
------------------ |
|
| AVAILABLE
FOR APPROPRIATION |
|
|
12,976,220 |
13,448,673 |
|
| Interim
dividend Nil (1998: @ 13%) |
|
|
-- |
6,500,000 |
|
|
| Final
dividend 15% (1998: Nil) |
|
|
|
7,500,000 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
7,500,000 |
6,500,000 |
|
|
|
|
------------------ |
------------------ |
|
| UNAPPROPRIATED
INCOME CARRIED FORWARD |
|
5,476,220 |
6,948,673 |
|
|
|
|
|
========== |
========== |
|
| Basic
earning per share (certificate) |
|
9 |
1.21 |
2.03 |
|
|
|
|
|
|
========== |
========== |
|
|
|
|
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
for the Investment Corporation of Pakistan |
|
|
|
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
S.M. MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| Cash
Flow Statement For the year ended 30 June 1999 |
|
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| CASH
FLOW FROM OPERATING ACTIVITIES |
|
|
| Cash
generated from operations |
|
10 |
2,649,648 |
1,385,385 |
|
| Sale
of investment |
|
|
8,791,267 |
14,194,000.00 |
|
| Purchase
of investment |
|
|
-- |
(21,252,354) |
|
| Taxes paid |
|
|
(753,082) |
(275,248) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow / (outflow) from operating activities |
|
|
10,687,833 |
(5,948,217) |
|
|
|
|
| CASH
FLOW FROM INVESTING ACTIVITIES |
|
|
| Return
on current account with the ICP |
|
|
259,844 |
590,923 |
|
| Security deposit |
|
|
|
-- |
(100,000) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash inflow from investing activities |
|
|
259,844 |
490,923 |
|
|
|
|
| CASH
FLOW FROM FINANCING ACTIVITIES |
|
|
| Dividend paid |
|
|
|
(4,012,117) |
(6,663,739) |
|
|
|
|
------------------ |
------------------ |
|
| Net
cash used in financing activities |
|
|
(4,012,117) |
(6,663,739) |
|
|
|
|
------------------ |
------------------ |
|
| NET
INCREASE/(DECREASE) IN CASH EQUIVALENT |
|
6,935,560 |
(12,121,033) |
|
| CASH
EQUIVALENT AT THE BEGINNING OF THE YEAR |
|
(989,456) |
11,131,577 |
|
|
|
|
------------------ |
------------------ |
|
| CASH
EQUIVALENT AT THE END OF THE YEAR |
|
11 |
5,946,104 |
(989,456) |
|
|
|
|
========== |
========== |
|
|
| The
annexed notes form an integral part of these accounts. |
|
|
|
|
for the investment Corporation of Pakistan |
|
|
|
ASADULLAH KHAWAJA |
|
ISTAQBAL MEHDI |
|
S.M. MUNEER |
|
|
Managing Director |
|
Director |
|
Director |
|
|
|
| Notes
to the Accounts For the year ended 30 June 1999 |
|
|
| 1.
THE FUND AND ITS OPERATIONS |
|
| In
order to broaden the base and to encourage investment in shares of companies
quoted on the stock exchanges in the country, the Third ICP Mutual |
|
| Fund
was established by the Investment Corporation of Pakistan (ICP), acting as
its trustee, on May 08, 1969 under the ICP Ordinance, 1966. |
|
| The
Fund is listed on the stock exchanges in Pakistan. |
|
|
|
| 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
|
|
|
| 2.1
Basis of preparation |
|
| These
accounts have been prepared in accordance with International Accounting
Standards, as applicable in Pakistan. |
|
|
|
|
| 2.2.
Accounting convention |
|
| These
accounts have been prepared under the historical cost convention. |
|
|
| 2.3 Investment |
|
|
|
| i)
Investment is valued at average cost where cost is lower than the market
value, determined on the basis of the average of the |
|
| highest
and lowest quotation on the balance sheet date; |
|
|
| ii)
In cases where market value is lower than carrying value, the carrying value
is reduced to recognise other than temporary |
|
| decline,
i.e., for a period not less than three years, in order to arrive at their
book value; and |
|
|
| iii)
Profit or loss on sale of investment is accounted for in the year in which it
arises. |
|
|
| 2.4 Taxation |
|
|
|
| Provision
for taxation is based on taxable income at the current rates for taxation
after taking into account tax credits available, if any. |
|
|
|
|
| 2.8
Revenue recognition |
|
|
|
|
|
|
| i)
Dividend income is accounted for at the closure of share transfer books of
the company declaring dividend; and |
|
|
|
|
| ii)
Return on current account with ICP is accounted for on the basis of the PLS
rate declared half yearly by a bank on PLS bank |
|
| accounts. |
|
|
|
|
| 3.
INVESTMENT IN QUOTED SHARES |
|
| Unless
stated otherwise, the holdings are in the ordinary shares of Rs. 10 each |
|
|
|
| 1999 |
1998 |
|
1999 |
|
1998 |
|
|
|
|
|
|
| *Holding |
Name of the company |
|
Book value |
Market value |
Book value |
Market value |
|
|
|
|
| No. of shares |
|
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
**Rate |
Amount |
|
|
|
|
MODARABAS |
|
| 54,000 |
54,000 |
F.G. Modaraba |
|
9.61 |
519,000 |
12.25 |
661,500 |
9.61 |
519,000 |
10.75 |
580,500 |
|
|
|
|
LEASING |
|
|
| 31,250 |
25,000 |
Orix Leasing Company Ltd. |
|
39.44 |
1,232,500 |
26.00 |
812,500 |
49.30 |
1,232,500 |
30.00 |
750,000 |
|
|
|
|
BANKS/INVESTMENT BANKS |
|
|
| 83,490 |
63,250 |
Bank Al Habib Ltd. |
|
16.87 |
1,409,000 |
18.00 |
1,502,820 |
22.27 |
1,409,000 |
23.00 |
1,454,750 |
|
|
|
|
TEXTILE COMPOSITE |
|
|
|
|
|
|
|
| 32,000 |
32,000 |
Burewala Textile Mills
Ltd. |
|
22.00 |
704,000 |
22.00 |
704,000 |
3.90 |
988,800 |
25.00 |
800,000 |
|
|
|
|
|
|
|
|
|
|
SYNTHETIC & RAYON |
|
|
|
|
| 30,153 |
26,220 |
Dewan Salman Fibre Ltd. |
|
12.17 |
367,080 |
25.17 |
758,951 |
14.00 |
367,080 |
13.55 |
355,281 |
|
|
|
|
SUGAR |
|
|
| -- |
104,986 |
Habib Sugar Mills Ltd. |
|
-- |
-- |
-- |
-- |
7.07 |
742,510 |
7.50 |
787,395 |
| -- |
55,425 |
Mirpurkhas Sugar Mills
Ltd. |
|
-- |
-- |
-- |
-- |
15.31 |
848,843 |
12.25 |
678,956 |
| 186,071 |
186,071 |
Shahtaj Sugar Mills Ltd. |
|
11.95 |
2,224,779 |
20.27 |
3,771,659 |
11.95 |
2,224,779 |
20.27 |
3,771,659 |
|
|
|
|
|
|
|
|
CEMENT |
|
|
| 30,000 |
30,000 |
Lucky Cement Company Ltd. |
|
3.82 |
114,600 |
3.82 |
114,600 |
13.38 |
401,400 |
3.90 |
117,000 |
|
|
|
|
FUEL AND ENERGY |
|
|
|
|
| 179,151 |
179,159 |
Karachi Electric Supply
Corporation Ltd. |
9.16 |
1,642,223 |
8.67 |
1,553,309 |
9.16 |
1,642,223 |
8.42 |
1,508,519 |
| 48,000 |
48,000 |
National Refinery Ltd. |
|
11.68 |
560,920 |
30.37 |
1,457,760 |
11.68 |
560,920 |
15.50 |
744,000 |
| 119,782 |
99,819 |
Pakistan State Oil
Company Ltd. |
|
133.15 |
15,949,838 |
92.75 |
11,109,781 |
159.78 |
15,949,839 |
73.75 |
7,361,651 |
| 71,846 |
66,731 |
Shell Pakistan Ltd. |
|
85.99 |
6,178,397 |
163.00 |
11,710,899 |
80.64 |
5,381,446 |
146.50 |
9,776,092 |
| -- |
8,115 |
Shell Pakistan Ltd. (RP) |
|
-- |
-- |
-- |
-- |
130.00 |
1,054,950 |
202.00 |
1,639,230 |
| -- |
478,551 |
Sui Southern Gas Company
Ltd. |
|
-- |
-- |
-- |
-- |
4.86 |
2,325,780 |
9.00 |
4,306,959 |
|
|
|
|
AUTO AND ALLIED
ENGINEERING |
|
| 50,000 |
50,000 |
Pak Suzuki Motors Company
Ltd. |
|
43.28 |
2,164,000 |
25.00 |
1,250,000 |
43.28 |
2,164,000 |
34.00 |
1,700,000 |
|
|
|
|
CABLES & ELECTRICAL |
|
|
| 16,940 |
16,940 |
Phillips Electric
Industries of Pakistan Ltd. |
71.32 |
1,208,270 |
41.95 |
710,633 |
71.32 |
1,208,270 |
34.09 |
577,485 |
| 8,316 |
6,600 |
Refrigeration
Manufacturing Company Pakistan Ltd. |
62.26 |
517,830 |
10.00 |
83,160 |
78.45 |
517,830 |
12.00 |
79,200 |
|
|
|
|
TRANSPORT AND
COMMUNICATION |
|
| 100,000 |
100,000 |
P.T.C.L. "A" |
|
33.15 |
3,315,500 |
20.02 |
2,002,000 |
33.15 |
3,315,500 |
15.77 |
1,577,000 |
|
|
|
|
CHEMICAL AND
PHARMACEUTICAL |
|
| 11,300 |
10,000 |
BOC Pakistan Ltd. |
|
129.57 |
1,490,100 |
81.00 |
931,500 |
149.01 |
1,490,100 |
90.00 |
900,000 |
| 33,124 |
35,937 |
Engro Chemicals
(Pakistan) Ltd. |
|
82.44 |
2,730,900 |
73.67 |
2,440,244 |
98.93 |
3,555,400 |
51.25 |
1,841,771 |
| 50,000 |
50,000 |
F.F.C. Jordan Fertilizer
Company Ltd. |
13.43 |
671,500 |
41.17 |
4,117,000 |
13.43 |
671,500 |
12.97 |
648,500 |
| 100,000 |
100,000 |
Fauji Fertilizer Company
Ltd. |
|
63.88 |
6,388,000 |
11.25 |
562,500 |
63.88 |
6,388,000 |
51.37 |
5,137,000 |
| 186,620 |
186,620 |
ICI Pakistan Ltd. |
|
14.14 |
2,640,330 |
9.00 |
1,679,580 |
14.14 |
2,640,330 |
11.62 |
2,168,524 |
|
|
|
|
PAPER AND BOARD |
|
|
| 258,750 |
225,000 |
Packages Ltd. |
|
14.67 |
3,797,939 |
41.00 |
10,608,750 |
16.87 |
3,797,939 |
36.00 |
8,100,000 |
|
|
|
|
FOOD & ALLIED |
|
|
| 5,000 |
5,000 |
Lever Brothers (Pak) Ltd.
(Rs. 50) |
|
635.01 |
3,175,050 |
760.00 |
3,800,000 |
635.01 |
3,175,050 |
925.00 |
4,625,000 |
|
|
------------------ |
|
------------------ |
|
------------------ |
|
------------------ |
|
Rupees |
59,001,756 |
|
62,343,146 |
|
64,572,989 |
|
61,986,472 |
|
========== |
|
========== |
|
========== |
|
========== |
|
| *The
above shares are held in the name of the Investment Corporation of Pakistan
which acts as a Trustee to the Fund. |
|
|
| **Rounded
off to two decimal places. |
|
|
|
| 4.
STATEMENT OF CHANGES IN EQUITY |
|
|
|
|
|
Issued, |
Unappropriated |
Total |
|
|
|
|
subscribed and |
Income |
|
|
|
|
|
paid up capital |
|
|
|
|
|
Rupees |
Rupees |
Rupees |
|
|
|
|
| Balance
as at 30 June 1997 |
|
|
50,000,000 |
3,303,634 |
53,303,634 |
|
| Income
for the year |
|
|
-- |
10,145,039 |
10,145,039 |
|
| Dividend |
|
|
|
-- |
(6,500,000) |
(6,500,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1998 |
|
|
50,000,000 |
6,948,673 |
56,948,673 |
|
| Income
for the year |
|
|
-- |
6,027,547 |
6,027,547 |
|
| Dividend |
|
|
|
-- |
(7,500,000) |
(7,500,000) |
|
|
|
|
------------------ |
------------------ |
------------------ |
|
| Balance
as at 30 June 1999 |
|
|
50,000,000 |
5,476,220 |
55,476,220 |
|
|
|
|
========== |
========== |
========== |
|
|
| 5.
MANAGEMENT FEE |
|
| The
management fee is payable to Investment Corporation of Pakistan @1/2% per
annum on the initial paid-up capital of the Fund. The management fee in |
|
| respect
of the additional capital raised by way of Right Issue is payable upto 3% per
annum of the net assets market value of the Fund to be determined at the |
|
| close
of the financial year. |
|
|
|
|
|
|
Note |
1999 |
1998 |
|
|
|
|
|
Rupees |
Rupees |
|
|
|
|
| Management
fee @1/2% per annum of the initial |
|
|
100,000 |
100,000 |
|
| paid-up
capital of Rs. 20 million |
|
|
|
|
|
| Management
fee @3% per annum of the market |
|
| value
of net assets at the close of the year |
|
5.1 |
1,193,717 |
998,288 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
1,293,717 |
1,098,288 |
|
|
|
|
========== |
========== |
|
|
|
|
| 5.1
Market value of net assets at the close of the year |
|
| Investment
in quoted shares |
|
|
3 |
62,343,146 |
61,986,472 |
|
| Long
term deposit |
|
|
|
100,000 |
100,000 |
|
|
|
|
| Current assets |
|
|
|
|
|
| Dividend
receivable |
|
|
525,000 |
638,500 |
|
| Prepaid
expenses |
|
|
7,500 |
20,000 |
|
| Current
account with the ICP |
|
|
5,946,104 |
108,832 |
|
| Taxation - net |
|
|
|
265,902 |
-- |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
6,744,506 |
767,332 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
69,187,652 |
62,853,804 |
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
| Accrued
expenses |
|
|
19,338 |
59,832 |
|
| Unclaimed
dividend |
|
|
2,850,784 |
6,862,821 |
|
| Taxation - net |
|
|
|
-- |
470,707 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
2,870,042 |
7,393,360 |
|
|
|
|
|
------------------ |
------------------ |
|
|
|
|
|
66,317,610 |
55,460,444 |
|
|
|
|
========== |
========== |
|
|
|
|
|
|
|
| 1999:
(66,317,610 x 30,000,000) |
|
|
@3% = |
1,193,717 |
|
| 50,000,000 |
|
|
|
========== |
|
|
|
|
| 6.
AUDITORS' REMUNERATION |
|
|
|
|
|
|
Taseer Hadi |
Ford, Rhodes, |
1999 |
1998 |
|
|
|
Khalid & Co. |
Robson, Morrow |
Rupees |
Rupees |
|
|
|
|
| Audit fee |
|
|
2,950 |
2,950 |
5,900 |
5,130 |
|
| Tax services |
|
|
4,515 |
-- |
4,515 |
7,000 |
|
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
|
|
7,465 |
2,950 |
10,415 |
12,130 |
|
|
|
========== |
========== |
========== |
========== |
|
|
|
|
| 7.
OTHER EXPENSES |
|
|
| Printing
and stationery |
|
|
13,774 |
61,698 |
|
| Advertising
and publicity |
|
|
3,185 |
17,276 |
|
| Professional
charges |
|
|
|
4,558 |
12,817 |
|
| Listing
fee - stock exchanges |
|
|
46,250 |
46,250 |
|
| Central
Depository Company |
|
|
|
27,081 |
12,500 |
|
| Computer
related expenses |
|
|
43,773 |
60,177 |
|
| Postage |
|
|
|
14,716 |
48,648 |
|
| Professional tax |
|
|
|
38,000 |
38,000 |
|
| Share
transfer stamps |
|
|
1,245 |
14,489 |
|
| Bank charges |
|
|
|
5,474 |
4,474 |
|
| Excise duty |
|
|
|
-- |
7,400 |
|
| Miscellaneous |
|
|
|
4,859 |
1,359 |
|
|
|
|
------------------ |
------------------ |
|
|
|
|
202,915 |
325,088 |
|
|
|
|
========== |
========== |
|
|
| 9.
BASIC EARNING PER SHARE (CERTIFICATE) |
|
| Income
for the year |
|
|
|
6,027,547 |
10,145,039 |
|
